Do not leave open positions in OPTIONS to expire. Close want open position, even though position value is worthless. STT is applicable on all open position on expiry and it may turnout to be costlier
Today I closed my position. Now I will wait for a downday, next week probably
25-04-2017
9500 CALL BUY 75 0.85 -63.75
9600 CALL SELL 75 0.40 30.00
9000 PUT BUY 75 2.70 -202.50
8900 PUT SELL 75 1.70 127.50
-108.75
RETAINED PROFIT 2107.50
INITIAL INVESTMENT 50000
CUMULATIVE PROFIT UPTO APR 17 3468.50
PERCENTAGE OF PROFIT TO INVESTMENT 6.94% IN 3 MONTHS
Thanks for the link,
Mr. C. Gupta thought himself a very smart/intelligent trader
(actually he is a complete idiot (sorry for my word, I can't resist).
He bought options that Nifty will close above 8,600 and it expired at 8,602.75 on that day. He must know all basic rules of option trading before such lucrative (idiotic?) move.
STT is applicable only on all open BUYING position on expiry day, NOT FOR ALREADY SOLD (WRITING) POSITION -- He should know that. Is it a TRAP? May be, but it is a predefined rule and we all have to follow it.
Thanks anyway, I enjoy your IRON CONDOR posts.:thumb:
May SERIES 9000-8500
MAX OPEN INT 9500-9000
INITIAL POSITION-03.05.17
8900 PUT BUY 75 13.20 -990.00
9000 PUT SELL 75 20.65 1548.75
9500 CALL SELL 75 27.70 2077.50
9600 CALL BUY 75 10.20 -765.00
NET 1871.25
MAX PROFIT 1871.00
MAX LOSS 5628.75 (100*75)-1871.25
RETAINED PROFIT
FROM EARLIER TRADES 3468.50
NET MAX LOSS 2160.25
